Chief Minister Pinarayi Vijayan on Tuesday assured the Assembly that the State government will provide guarantee for all deposits in the cooperative sector to ensure that the sector is not weakened as a result of the Centre’s decision to keep it out of the purview of financial transactions related to demonetisation.
He said the all-party delegation from the State would meet the Prime Minister and the Union Minister for Finance on Thursday to impress upon them the need to protect the cooperative sector in the State. Winding up the one-day special discussion on the crisis faced by the sector, Mr. Vijayan said while the Union Finance Minister seemed convinced of the problems faced by Kerala’s cooperative sector, no concrete action was forthcoming either from the Centre or the Reserve Bank of India.
On black money charge
Mr. Vijayan did not buy the argument that the cooperative sector was intended to park black money.
“We are open to income tax inspections and extend all facilities for this. But we do not subscribe to the proposals intended to undermine the social commitment of the sector. The weakening of the cooperative movement will hit several other sectors that are outside the reach of the scheduled commercial banks,” he said.
Leader of the Opposition Ramesh Chennithala criticised the Prime Minister for refusing to face the Parliament. The demonetisation decision was the first step to financial fascism, he said.
Indian Union Muslim League leader P.K. Kunhalikutty said the unpopularity of demonetisation had created conditions for a joint platform against Mr. Modi. He said restrictions on cash withdrawals would have effects on sectors such as agriculture and dairy farming.
